Booz Allen Hamilton Agrees To Acquire Digital Service Business Aquilent

Booz Allen Hamilton today announced that it has entered into an agreement to acquire the Laurel, MD-based digital services firm eGov Holdings, Inc.

Booz Allen Hamilton today announced that it has entered into an agreement to acquire the Laurel, MD-based digital services firm eGov Holdings, Inc. (d/b/a Aquilent), a premiere architect of .gov solutions for the Federal government, for whom it deploys cutting-edge digital, agile, DevOps, and cloud capabilities. Booz Allen has agreed to pay a purchase price of $250 million in connection with the transaction, subject to customary purchase price adjustments and customary escrows.

The transaction will bolster Booz Allen's growing technology capabilities and talent base, particularly its emphasis on building citizen-focused digital services. Aquilent will be the Laurel, MD hub of Booz Allen's Digital business. Upon closing of the transaction, eGov Holdings, Inc. will be a wholly-owned subsidiary of Booz Allen Hamilton Inc. The transaction is expected to close by December 31, 2016, and is subject to customary closing conditions.

Aquilent employs approximately 350 professionals who currently provide digital and cloud services for the U.S. Department of Health and Human Services, U.S. Postal Service (USPS), U.S. General Services Administration (GSA), and other federal clients. Aquilent has grown rapidly, with revenues growing at a 28% compounded annual growth rate over the last five years. For the remainder of Booz Allen's fiscal year 2017, the transaction is expected to add approximately $30 million to $35 million of revenue. It is expected to be accretive to Booz Allen earnings and to add to operating margin in fiscal year 2018.

The acquisition will further expand Booz Allen's ability to blend its consulting heritage with advanced technical expertise to deliver to clients cloud, mobile and modular technology services using advanced methodologies such as Agile, DevOps and open source.